New York-based York Research Corp. announced this week it plansto exit the power marketing business following the pricing turmoilin the Midwest electricity market this summer, making it about theeighth or ninth marketer to take this action.

Instead, the company will focus its attention on the natural gasmarketing side of its business and on developing power projects,said President Robert Beningson. He estimated that the marketingarm of York Research, North American Energy Conservation (NAEC),currently contributes about $800 million in annual revenues to thecompany.

He said that York Research, which he called a “reasonably sized”marketer selling 6 to 10 million MWhs a year, decided to pull outafter the company suffered a $7 million after-tax loss in thesecond quarter as a result of the price volatility in late June. Heexpects more power marketers to follow suit.

“It’s a risky business; it’s a changing business; it’s illiquidin most of the territories; and the rules are being set unevenly,”Beningson noted. “It’s too uncertain a market because there’s nofutures market like gas.”

He believes price manipulation was responsible for the pricespike last June in the Midwest market. “It’s clear to me that therewas a lot of game-playing by the transmission-owning utilities inparticular. But whether they [FERC] are going to prove it or not,it’s hard to say.”

In addition to its gas business, Beningson said the companyplans to focus on developing generation projects.

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